A debt can be paid off in three equal installments: $1000 now, $1000 in 3 years and $1000 in 6 years. What single payment can pay off the loan in 4 years form now, if interest is 10% per annum, compounded semi-anually?
1 Answer | Add Yours
Let principle part in first and second installments are respectively x and y . Therefore
appy formula t calculate installments
`A=P(1+R/100)^n` , where A is amount ,P is principle,R% is rate per annum and n is number of conversion.
first installment will be
Thus total principle /debt=
Thus after four years ,it becomes
We’ve answered 397,390 questions. We can answer yours, too.Ask a question